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INFORMAL REPORT TO CITY COUNCIL MEMBERS
W ex
!STS
To the Mayor and Members of the City Council
No. 9016
February 24, 2009
Page 1 of 1
SUBJECT: Review of Neighborhood Empowerment Zone Tax Abatement
For Property Located at 3201 South University Drive
The purpose of this Informal Report is to provide City Council with information regarding a proposed
Neighborhood Empowerment Zone (NEZ) tax abatement.
Chapter 378 of the Texas Local Government Code provides that a municipality can offer an abatement
of municipal property taxes for properties located in a Neighborhood Empowerment Zone.
3201 South University Drive
TCU Development Partners, LLC is the owner of the property located at 3201 South University Drive.
The property is located in the Berry/University NEZ and Council District 9. TCU Development
Partners, LLC applied for a five -year municipal property tax abatement under the NEZ Tax Abatement
Policy and Basic Incentives (Resolution No. 3487, 05- 2007). The Housing & Economic Development
Department reviewed the application and certified that the property met the eligibility criteria to receive
a NEZ municipal property tax abatement. TCU Development Partners, LLC will invest $7,500,000.00
to construct a mixed use project with 8,000 square feet of retail space and 49 apartments for student
housing.
The municipal property tax on the improved value of the commercial building after its construction is
estimated at $57,712.00 per year for a total of $288,560.00 over the five -year period. However, this
estimate may differ from the actual tax abatement value, which will be calculated based on the TAD
appraisal value of the property.
In the event of a sale of this property, the agreement may be assigned, with City Council approval, to the
new owner, as long as the new owner meets all of the eligibility criteria as stated in the NEZ Tax
Abatement Policy and Basic Incentives.
Staff recommends proceeding with placing the tax abatement on the March 10, 2009, City Council
agenda for consideration by City Council.
D e- A. Fiss ler P.E.
City Manager
Attachments
Map & Elevation
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
FORT WORTH
MWOUL IMA u_9
Applicant:
Address:
Council District:
NEZ:
TCU Development Partners LLC
3201 S University Drive
9
Berry /University
BERRY
I